| In-The-Money (ITM) Stock Options Contracts |
| Settlement Method: Physically settled. |
| STT (Securities Transaction Tax): Charged on exercised contracts at a rate of 0.125% of the intrinsic value (intrinsic value * quantity). |
| Brokerage: Charged on both the buy and sell sides. |
| Out-of-The-Money (OTM) Stock Options Contracts |
| Outcome: Expire worthlessly. |
| Loss: The entire premium paid is lost. |
| Brokerage: Charged only on the buy side. |
| Index Options |
| Settlement Method: Cash-settled. |
| If Bought: |
| ITM Contracts: STT is charged on exercised contracts at 0.125% of intrinsic value, and brokerage is charged on both sides. |
| OTM Contracts: Expire worthlessly, and brokerage is charged only on the buy side. |
| If Shorted or Sold: |
| STT: Charged only on the sell side when initiating the short. |
| STT Impact on Expiry: None. |
| Premiums: Received are kept by the trader, depending on the moneyness of the option contract. |
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